Construction Sector – A Time for Increased Financial Vigilance
The recent news that Helix Construction has gone into administration has once again highlighted the need for fencing contractors working across the construction sector to remain vigilant about the financial position of the contractors they are subcontracting to, and particularly the payment terms being achieved – or missed.
The AFI continues to work with Build UK and others across the construction industry to improve payment practices, reduce retentions, move payment terms towards less than 45 days and improve the overall financial security of the supply chain.
However, while the Association can lobby for industry-wide change, individual businesses must continue to actively manage their own financial exposure.
With construction activity facing a more challenging economic environment than we have experienced over recent years, careful management of cashflow, outstanding payments and potential bad debt is becoming increasingly important.
A profitable contract on paper can quickly become a problem if payments are continually delayed, retentions accumulate or a significant customer becomes insolvent.
Know Who You Are Working For
The AFI has long offered a credit checking service to members to help them better understand the businesses they are considering working with.
A credit check can only ever provide a snapshot of a company’s financial position at a particular point in time, and it cannot predict whether a business will ultimately succeed or fail. However, it can provide valuable information and identify trends that may warrant further investigation.
For example, increasing turnover may initially appear positive, but if this is accompanied by a significant reduction in profitability or deterioration in other financial indicators, it may be appropriate to ask further questions.
Changes in the structure of a company’s finances, payment performance and other available financial information can also help businesses make more informed commercial decisions.
For new customers, carrying out appropriate checks before tendering or entering into a contract should form part of good financial and risk management. It allows contractors to consider not only whether they can deliver the work, but also the financial strength of the organisation that will ultimately be responsible for paying them.
Credit checking should not stop once a contract has been secured. Businesses can change quickly, particularly during uncertain economic conditions. Payment patterns should therefore be monitored throughout the relationship.
Late payments, requests to extend agreed terms or a growing level of outstanding debt should not simply become accepted as part of doing business.
Caution, Not Concern
The AFI is not seeking to create unnecessary concern within the fencing industry.
Our message is one of caution, awareness and good financial management.
Fencing businesses cannot control the financial decisions made by the organisations above them in the construction supply chain, but they can take sensible steps to understand and manage their exposure.
A sudden increase in workload or the award of a significant new contract can appear to be a major opportunity, but it should still be approached with appropriate financial due diligence. Businesses need to assess the level of financial exposure involved, the resources required to deliver the work and, importantly, how that work will be financed until payment is received.
Growth is positive, but growth also has to be financed. The financial risk associated with taking on larger contracts, or becoming overly reliant on a single customer, should always be considered against the long-term security and sustainability of your business.
Know who you are working for. Understand the payment terms. Monitor whether those terms are being met. Keep an eye on your level of exposure and outstanding debt. And, where appropriate, use the information available to you before deciding how much commercial risk your business is prepared to accept.
As we navigate a more uncertain economic period, these disciplines will become increasingly important.
The AFI will continue to represent the interests of fencing contractors at industry level and push for improvements in payment practices and greater financial security throughout the construction supply chain.
At the same time, we encourage members to make use of the support and information available through the Association.
Good fencing businesses need good financial management. Protecting cashflow today will help ensure our sector continues to thrive tomorrow.
The AFI expresses sympathy to any fencing contractor that has been exposed to the recent news of Helix Construction and its employees situation.
Calling All Cyclists – Join the ‘Flying Fencers’!
Are you a cyclist working in the fencing industry? Fancy taking on an unforgettable challenge for a very worthwhile cause?
One of our AFI members is looking to bring together a team of 8–12 riders from across the UK and Ireland to form the ‘Flying Fencers’, taking on an Edinburgh to Paris cycling challenge in support of the My Name’5 Doddie Foundation, raising vital funds for Motor Neurone Disease (MND) research.
The challenge will begin in Edinburgh on 17 February 2027, with riders heading south over the following four days to deliver the first of two international match balls ahead of the England v Italy Six Nations match at Twickenham on Saturday 20 February.
From there, the team will continue across to Paris, delivering another match ball for France v Scotland the following day.
The Flying Fencers hope to bring together riders representing all four home nations, with the challenge completed in a relay format. Riders will tackle stages of approximately 50 miles, with stops along the route to change teams, refuel and meet supporters.
And they certainly won’t be riding alone – the wider event is expected to attract up to 500 cyclists.
Could You Be a Flying Fencer?
The team would love to hear from people from across the fencing industry who might like to get involved – whether that means getting on a bike and joining the team, sponsoring the challenge, or helping with fundraising.
It’s a fantastic opportunity for the fencing community to come together, take on a memorable challenge and help raise money for research into MND.
Interested in riding, sponsoring or supporting the Flying Fencers?
GET INVOLVED – contact info@theafi.co.uk
Get a Taste of an AFI Best Practice Day at APF
If you’re heading to the APF Show, make sure you come and find the AFI in the Fencing Village – and bring your questions with you!
Alongside our stand, we’ll be bringing a little of the AFI Best Practice Day experience to the show with a practical fencing demonstration session.
Visitors will be able to stop by, watch practical techniques in action, pick up tips and take a closer look at knot work, with plenty of opportunity to ask questions and talk fencing.
Our Best Practice Days are all about bringing the industry together to see, learn, ask questions and share knowledge, and the APF session will offer a small taste of exactly that.
Like What You See? Join Us at Kirkley Hall in October
For those wanting more, the AFI & AFA Autumn Best Practice Day takes place at Kirkley Hall on Thursday 15 October, with a full day dedicated to agricultural strained wire fencing.
Expect live demonstrations, hands-on learning, expert guidance, manufacturers and suppliers, and plenty of opportunity to exchange ideas with fellow fencing professionals.
So, if you’re visiting APF come and see us – and if it leaves you wanting more, book your place for Kirkley Hall!
Tackling the Cost of Doing Business
Build UK has worked with the CBI to demonstrate the impact of the increased cost of doing business on employment opportunities, investment and growth across construction and the wider economy. A new report – Room to Grow – brings together evidence from 15 sectors, including construction, to highlight the real‐world pressure that businesses are under and sets out recommendations to reduce the cost of doing business.
Rising costs are a major concern for Build UK members across the whole supply chain, with higher taxes, employment costs and material prices increasing the cost of delivering construction projects and leading to a more cautious approach by investors. The ‘deep dive’ on construction shows that the sector’s overall tax contribution increased by 11.9% to £21.94 billion in 2025/26, including a 24.8% rise in employer National Insurance contributions.
Ahead of the Budget on Wednesday 28 October, Build UK will be supporting the CBI to make the case that easing the cost of living starts with tackling the cost of doing business. For construction, that means investing in economic and social infrastructure, reviewing taxes and levies that affect project viability, and addressing the impact of the new steel quota and tariffs which are increasing costs for UK companies.
Free Safe Digging Training for Agricultural Workers & Contractors
Agricultural workers and fencing contractors are being encouraged to take advantage of an updated Safe Digging eLearning course from LineWatch, designed to help improve awareness of safe working practices when breaking ground.
The online course is completely free of charge, takes around 20 minutes to complete, and provides a useful introduction to safe digging — making it particularly relevant for anyone undertaking fencing or other groundworks.
AFI members are encouraged to share the course with their teams, apprentices and relevant training contacts.
Access the free Safe Digging eLearning course
Public Sector Payment Performance
Under the Procurement Act, contracting authorities are required to publish a ‘Payments Compliance Notice’ every six months setting out their payment performance, and Build UK has updated its public sector payment performance table to show how promptly central Government departments and other key public sector bodies pay their supply chains.
As called for by Build UK, contracting authorities are now reporting on similar metrics to large companies in the private sector under the Reporting on Payment Practices and Performance Regulations, enabling like‐for‐like comparison for the first time. Our public sector table shows the average time taken to pay invoices and the percentage of invoices not paid within terms, as well as the percentage of invoices paid within 30 days, which is the requirement for public sector contracts. Combined with our private sector table, it provides a complete picture of payment performance in the construction sector and the increased transparency can help to drive sustained improvements in performance.
Further measures to tackle late payments are set out in the Commercial Payments Bill, which reached the report stage in the House of Lords this week. Build UK has produced a high‐level summary of the Bill, in collaboration with Pinsent Masons LLP, showing how the new measures will be implemented in the construction industry, particularly for construction contracts under the Construction Act.
Member Benefit Spotlight: FREE Fencing News
Keep up with the industry – on us!
Did you know that AFI members can receive a FREE copy of Fencing News?
Fencing News brings together the latest news, products, projects, people and developments from across the fencing industry, making it an easy way to keep up with what’s happening across the sector.
As an AFI member, you can enjoy your copy completely free of charge as part of your membership benefits.
It may be one of the simpler perks of being an AFI member – but if you enjoy keeping up with the people and businesses shaping our industry, make sure you’re taking advantage of it.
👉 Not receiving your free copy? Contact the AFI team and we’ll help you get set up.